ECONOMIC INJURY DISASTOR LOAN (EIDL) UPDATE
The Small Business Administration (SBA) began the COVID-19 Economic Injury Disaster Loan (EIDL) program at the start of the pandemic. The SBA announced they have increased the maximum amount small businesses and non-profit organizations can borrow through the program. The SBA has raised the loan limit from 6-months of economic injury with a maximum loan amount of $150,000 to up to 24-months of economic injury with a maximum loan amount of $500,000.
If you’re a business that has received a loan at the current limits, you do not need to submit a request for an increase. The SBA will reach out to you via email to provide more details about how to request an increase. Any new loan applications submitted going forward will be automatically considered for the new loan parameters.
You can apply for the EIDL program here, and you can email your questions to DisasterCustomerService@sba.gov or call the the SBA at 1-800-659-2955.
Also, effective immediately, applicants can send a request for reevaluation of a Targeted EIDL Advance application that was declined to the following email address: TargetedAdvanceReevaluation@sba.gov.
Applicants should follow these instructions when requesting a reevaluation:
- Send an email to TargetedAdvanceReevaluation@sba.gov
- Use the subject line “Reevaluation Request for [insert your 10-digit application number]”
- In the body of the email, include identifying information for the application such as application number, business name, business address, business owner name(s) and phone number
- Important: Include an explanation and any documentation that addresses the reason for the decline, if available. SBA will contact applicants if additional documentation is required to complete the review.
SAVE OUR STAGES
Among the hardest hit small businesses throughout the pandemic have been live venues, performing arts organizations, museums, and movie theaters. The Shuttered Venue Operators Grant, otherwise known as the Save Our Stages Grant, is an SBA grant program that directly targets these businesses for relief. This program includes over $16 billion in grants to shuttered venues. Eligible applicants may qualify for grants equal to 45% of their gross earned revenue, with the maximum amount available for a single grant award of $10 million. $2 billion is reserved for eligible applications with up to 50 full-time employees.
Unfortunately, the application portal had been temporarily suspended due to technical difficulties. I am pleased to announce that the Shuttered Venue Operators Grant application portal will reopen on April 24. In the meantime, applicants can register for a new account here.
RESTAURANT REVITALIZATION FUND (RRF)
The RRF is designed to provide emergency assistance for eligible restaurants, bars, and other qualifying businesses. While the SBA is not yet accepting applications, you can prepare by reviewing the sample application, program guide, and cross-program eligibility chart here. You will be able to apply through SBA-recognized Point of Sale Restaurant Partners or directly via SBA in a forthcoming online application portal. If you haven’t already, sign up for RRF email updates here.
The official application launch date will be announced shortly. Ahead of the application launch, and over the next two weeks, the SBA will provide outreach and training on how to apply, application requirements and where to apply.
For the first 21 days that the program is open, the SBA will prioritize reviewing applications from small businesses owned by women, veterans, and socially and economically disadvantaged individuals. Following the 21-day period, all eligible applicants are encouraged to submit applications.
STILL HAVE QUESTIONS?
Because these programs are administered by SBA, they should be your first point of contact with questions or issues. You can reach the SBA by calling (612) 370-2324, emailing Minneapolis.firstname.lastname@example.org, or by visiting their website. You can also reach out to your local Small Business Development Center for assistance. You can also find information on the House Committee on Small Business website, here.
The SBA has launched a series of workshops to provide aspiring entrepreneurs with the information needed to ensure economic empowerment and business success. The next workshop is on April 28 at 10 a.m. CT and will cover how and where to find additional small business support resources. You can also attend a webinar on navigating today’s crises and disruption on Thursday April 29 at 11 a.m. CT.